Under the review as announced today by Minister of International Trade and Industry, Datuk Mustapa Mohamed:-
1.Foreign firms can make luxury cars locally
FOREIGN firms will be given manufacturing licenses to hold 100 per cent equity in firms which produce luxury vehicles with an engine capacity of more than 1,800 cc and costing more than RM150,000.
Import duties of all completely-built-up (CBU) and completely-knocked-down (CKD) cars will be maintained.
Incentives and exemptions will be increased to develop local auto parts so that there would no longer be parts imports by 18 months’ time, a move which help do away with imported and used spare parts outfits.
2.AP to be scrapped by 2015
The AP system for imports of CBU vehicles will be terminated whereby open APs for used vehicles will be terminated by December 31, 2015.
"No new applications for open APs will be considered and franchise APs will be terminated by Dec 31, 2020," he said.
Besides this, a charge of RM10,000 for each open AP will be introduced as announced in the 2010 budget last week whereby under current status, APs are issued for free.
3.Mandatory testing for cars over 15 years old
Vehicles which are 15 years and above would also have to go through mandatory testing to ensure their roadworthiness but provisions would be made for vintage cars.
This review was undertaken after extensive discussions with industry players including manufacturers, assemblers, auto parts makers, non-governmental organisation as well as car associations.
4.Effective Jan 1 2010, 18 new policies and measures covering licensing, duties, incentives, technology and environment, safety and standards and APs were introduced under the NAP review.
Amongst which under the new measures, a new strategic partnership between Proton and a global established Original Equipment Manufacturer (OEM) will be established.
Currently, Proton is in talks to establish strategic partnership with international partners.
As part of ongoing efforts to help Bumiputera entrepreneurs in the automotive industry, a Fund for Bumiputera Development will also be established to assist Bumiputera companies venturing into the automotive and other related businesses
Wtih this review in place , CAN WE DREAM OF BIG CARS AND BIG POWER NOW?
CAN WE AFFORD THEM ,HUH?
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